- Tight scrap supply, steady spot demand lift prices
- Semis, finished steel prices move up by INR 200-400/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 300/tonne (t) d-o-d to INR 38,800/t DAP on 18 Aug 2026.
The Mandi Gobindgarh secondary steel market firmed d-o-d, with scrap-to-finished steel prices improving by INR 200-300/t, driven by mild scrap shortage and steady spot demand. Overall buying activity remained moderate in the region.
Raw material tightness persisted due to stricter border checks and logistical bottlenecks, which slowed scrap arrivals. Some mills have already implemented production cuts amid weak margins and a bid-offer disparity.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 400/t d-o-d to INR 30,300/t DAP, supported by steady procurement from local mills. In contrast, steel-grade pig iron prices in Ludhiana remained flat d-o-d at INR 42,500/t DAP.
A mill owner informed BigMint, “Local Mandi mills maintained healthy sponge iron procurement levels, with direct purchases from the Durgapur-West Bengal region. Additional supply flowed in from the Jharkhand and Odisha belt, ensuring adequate raw material availability despite price firmness.”
Steel market trends
Semi-finished steel prices showed a positive trend across major production centres, supported by improved buying interest and firmer mill offers. In Mandi Gobindgarh, ingot prices increased by INR 400/t d-o-d to INR 42,900/t DAP, while prices across other key production centres rose by INR 400-700/t.
In the finished-steel segment, Fe500 rebar prices in Mandi Gobindgarh increased by INR 200/t d-o-d to INR 47,600/t ex-works, reflecting moderate buying interest. HR strip (patra) prices showed stronger momentum, climbing by INR 500/t to INR 47,800/t ex-works, indicating comparatively robust supply-demand conditions in this segment.
Upcoming scrap auctions
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 3,800-4,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $335/t, approximately INR 34,400/t (inclusive of freight). HMS (80:20) in Mumbai climbed by INR 550/t to INR 33,600/t DAP. Indicative prices of shredded from Europe stood at $395/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 12,400/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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